IN BANKRUPTCY.

Taranaki Daily News, Volume LIV, Issue 3, 28 June 1911, Page 7

IN BANKRUPTCY.

"THE G. W. LAWRENCE CO." A meeting of creditors in the estate of G. W. Lawrence, cycle dealer, was held at the olfice of Mr. J. S. S. Medley, Deputy Official Assignee, yesterday afternoon. The bankrupt was adjudged bankrupt on his own petition on 17th June. Mr. Standish, of Messrs. Standish and Standish, appeared with the bankrupt, and four creditors were present, viz., Messrs. W. F. McAllum, A. Tomlinson, F. C. Tribe (E. Reynolds and Co.), and B. C. Emery. There was no appearance on behalf of the two largest creditors, viz., J. B. Clarkson and Co., Ltd., Wellington, £194 7s 4d, and the Continental C. and G. Rubber Co., Ltd., Auckland, £67 3s lid. The local creditors were: A. Tomlinson, £4 5s fid; Hooker Printing Co., £1 lis fid; Daily News, £l4 lis 8d; T. Avery, £1 10s; West and Sons, £1 10s fid; W: H. Skinner (rent), £29 16s fid; B. C. Emery, £2 14s; Standish and Standish, £4 4s lOd; W. F. McAllum, £29; E. Reynolds and Co., £9 8s 3d. Assets were: Stock in trade (a'bicycle out on hire), £3; book debts, £212 8s 4d; cash in hand, '£72; furniture, £5; Total, £292 8s 4d. The deficiency was £166 odd.

The bankrupt's statement was to the effect that he started in Marton three years ago as a cycle dealer with capital of about £lO, and ontinued in business for two years. He got on fairly well for a start, but when business got too big for his scanty capital he soJd out. Then lie opened in New Plymouth in August, 1910, with cash in hand of £77 15s 8d; also stock and book depts, though, lie owed debts amo i ring to £l5O odd. ;He had been in bmi.viss here since, but owing to lack of capital had not been able to accept what would be considered good business on the "hire-purchase" system. When lis principal creditor, Mr. Clarkson, went into bankrupt')) affairs with h'.u. ini discovered a deficiency, it was :l"?idu.| to make a composition in the niere=tt of all the creditors, but ill's fell through, some of the creditors rtt'ising to agree to it He then recognised he had no hope of getting ahead of things, and his only alternative was to file. Mr. Medley said that a little before the bankrupt filed he had sold his stock to Mr. B. C..Emery for £75, and that amount ivas in the hands of Messrs. Standish and Standish. He thought the sale would stand, as it was completed before the bankruptcy proceedings commenced. He understood from the bankrupt that this sale was recommended by Messrs. Clarkson and Co., the largest creditors.

The bankrupt gave evidence on oath. Answering questions asked by the D.0.A., he said,that when he sold out in Marton lie got £3l 3s in cash out of the transaction. The purchase prictwas £433, but the purchasers took over his liabilities, which left him this balance, i When he came here his Marton book } debts were £l2O. The balance of the £212 8s 4d book debts were in conmotion with, his New Plymouth business. They were all good. He had no partner at Marton. At New Plymouth he commenced to deal with Mr. C-larkson. He bought goods, agreeing to pay €6O cash and £ I.W on terms at 7% per cent., besides the current account. Though trading as the G. W. Lawrence Co., he Baid he had no partner in the business here. He traded under that title, with a view to floating a limited liability company if his venture proved successful. There lirtd been an actual loss all the time be had been in business. He paid 27s (id n week for the ground floor of his shop, besides the rates, and £2O a year for the first floor. The D.O.A. remarked that this was a pretty big rent. Mr. Toinlinson asked concerning the bankrupt's branch at Ilawe'ra, and was informed that the branch was a failure. In further examination, the bankrupt said that some of the book debts represented hire-purchase transactions, and there were assets in the shape of bicycles that could ibe seized. He understood that the payment of the Continental Rubber Co.'s debt was guaranteed by Clarksons, the D.O.A. remarking that that did not affect the other creditors at all.

A resolution was carried, acquiescing in Hie sale of the stock to Emery. Mr. UcAllnm moved that the court be asked to grant the bankrupt's discharge when application is made.—Seconded by Mr. Tomlinson and carried.